Prius even if it has higher fuel consumption. Let’s investigate that claim now, assuming a car similar to a Ford Fiesta. The capital cost to buy it is substantially lower, as are the yearly taxes and insurance, but the fuel consumption is about 50% higher.

• The car costs $15000 to buy.
• The capital charge factor is 0.23, the same as the Prius.
• The taxes, fees, and insurance each year total to $1000.
• You drive the car 20000 km/year, the same as the Prius.
• Variable operation and maintenance (VOM) costs add up to $0.018 per kilometer.
• Fuel costs $2.20 per liter.
• The car can travel 100 km on 7.7 L of fuel.

1-What is the total fixed cost in dollars per kilometer?

2-What is the variable cost in dollars per kilometer?